US Fed Cuts Interest Rates, But Signals Cautious Approach
- Forecast for 6 months: The US economy is expected to continue growing at a solid pace, with the unemployment rate remaining low and inflation staying somewhat elevated. The Fed is likely to maintain a cautious approach to monetary policy, with a possible pause in rate cuts in the next 6 months.
- Forecast for 1 year: The Fed is expected to resume its easing cycle in March, with two quarter-percentage-point rate reductions by the end of 2025. The US economy is likely to continue growing, with inflation staying above the 2% target for another year.
- Forecast for 5 years: The US economy is expected to experience a moderate growth rate, with inflation gradually returning to the 2% target by 2027. The Fed is likely to maintain a neutral stance, with interest rates remaining around 4% by 2025.
- Forecast for 10 years: The US economy is expected to experience a long-term growth trend, with inflation staying around the 2% target. The Fed is likely to maintain a neutral stance, with interest rates remaining around 4% by 2034.
Tags: finance
